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#1 2006-05-05 16:49:43
- Jai Ganesh
- Administrator
- Registered: 2005-06-28
- Posts: 48,390
Finance
Simple Interest
Simple Interest on P Dollars at interest rate r (expressed as a decimal) over time period t is
Example:- The Simple Interest on $400 for 3 months at 5% per annum Simpe interest would be
I=Prt
Hence Simple Interest on $400 for 3 months at 5% pa Simple Interest is 5 Dollars.
Compound Interest
The amount A, or future value, of principal P invested at interest rate r (expressed as decimal) compunded m times per year for t years is
where ,
the interest rate per compounding period, and n=mt, the number of compunding periods.
For example, Compound interest for $400 at the rate of 10% per annum compounded half yearly for 1 year would be calculated as follows:-
n=2 (1year = 2 half years).
i=10% pa = 5% per half year
Therefore, Compound Interest = $441-$400 = $41
Annuity
The future value of an Ordinary Annuity is
where R is the periodic payment, i the interest rate per period, and n the number of periods. In an ordinary annuity, the payment is made at the end of each period.
The present value of an ordinary annuity is
Profit and Loss
SP=Selling Price, CP=Cost Price
It appears to me that if one wants to make progress in mathematics, one should study the masters and not the pupils. - Niels Henrik Abel.
Nothing is better than reading and gaining more and more knowledge - Stephen William Hawking.
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#2 2006-05-06 01:21:31
- George,Y
- Member
- Registered: 2006-03-12
- Posts: 1,379
Re: Finance
What job can we do if you put all the tricks online ????
X'(y-Xβ)=0
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#3 2006-05-07 17:10:49
- Jai Ganesh
- Administrator
- Registered: 2005-06-28
- Posts: 48,390
Re: Finance
Discount
If a discount x% is offered on price P, then
For example, if a discount of 15% is offered on a car worth $4000, then the discounted price is given by
Successive Discounts
If discounts of x% and y%, in that order succesively, are offered on price P, then
For example, if successive discounts of 10% and 20% are offered on an article worth $5000, then
It appears to me that if one wants to make progress in mathematics, one should study the masters and not the pupils. - Niels Henrik Abel.
Nothing is better than reading and gaining more and more knowledge - Stephen William Hawking.
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